Corporate Intangibles Research and Development Manual

Core computational rules: CT computation: intangible assets used for life assurance business

Life Assurance Companies - The I-E System

In general, the profits of life assurance companies are not assessed as trade profits even though their activities are trading in nature. Instead, they are taxed under a particular regime known as the I-E system. This is explained in the Life Assurance Manual (LAM).

Because of this, there are special provisions in CTA09/PART8 to cover the position of life insurance companies. These exclude from the scope of Part 8 intangible fixed assets held by a company for the purposes of its life assurance business except:

computer software, but subject to:

the general exclusion for software treated for accounting purposes as part of the cost of the related hardware - CIRD25140